Retirement Income That Lasts: Immediate vs Deferred Annuities
NPS and ULIP pensions carry market risk for higher growth; traditional plans offer guaranteed returns with lower upside. A balanced plan covers essentials with guaranteed income and inflation-beating growth on the rest.
Tax angles that matter
Section 80CCD(1B) adds a Rs 50,000 NPS deduction beyond the Rs 1.5 lakh 80C cap; Section 80CCC covers pension plan premiums; annuity income is taxable at slab - time withdrawals accordingly.
The three main vehicles
NPS is market-linked and tax-efficient with mandatory annuity purchase at retirement; immediate annuities convert a lump sum into guaranteed lifetime income; deferred pension plans accumulate during working years, then convert at a chosen age.
Pension comparisons need numbers against your actual goals - a free assessment runs them. See the pension plans advisory service for free guidance.